Asked by Kaitlyn Foley on Jul 04, 2024
Verified
A project which has an initial cash outlay, with all future cash flows positive, is said to be:
A) Independent.
B) Conventional.
C) Mutually exclusive.
D) Value-creating.
E) Short term.
Initial Cash Outlay
The immediate amount of cash required to initiate a project, investment, or purchase.
Conventional
Based on or in accordance with what is generally done or believed.
Independent
Characterizes an entity or person free from outside control or influence, often highlighting autonomy in decision-making.
- Ascertain and differentiate between projects that cannot coexist and those that are independent.
Verified Answer
IM
injelica morenoJul 10, 2024
Final Answer :
B
Explanation :
A project with an initial cash outlay followed by all positive future cash flows is described as a conventional project. This pattern is typical for many investments where the initial cost is followed by a series of positive returns.
Learning Objectives
- Ascertain and differentiate between projects that cannot coexist and those that are independent.